A new business that sets up in for example, my local town is local business. One day it may set up outlets in other parts of Britain so that it becomes a national business. Soon after, it might start to sell products overseas – becoming international business. Finally, it may produce goods and develop selling outlets actors the globe – by which time it will be a global business.
For example Save the Children is national business because it collects money and resources and sends them worldwide for the children in need. Cadbury is operates global because it was set up in the UK and now sell products in whole world. Public and Private Business Public sector businesses are those that have been set up or taken over by the government. Private businesses are owned by private citizens. In most countries the majority of businesses are owned by private individuals.
An example of shareholder is the Russian multi-milliner, Roman Abramovich, who owns most of the shares in the famous football club Chelsea FC. Abramovich also has shares in many Russian companies, including one of Russia’s major oil companies. But until the 1990s nearly all of the businesses in Russia were owned by the government – they were public sector. Private owners risk their own money so are determined for their business to succeed.
A partnership is usually formed by signing a Deed of Partnership with the paperwork being supervised by a solicitor. Partnerships are typically found in professional work, e. g. medical or dental practice, a group of accountants or solicitors. People in business partnerships can share skills and the workload, and it may be easier to raise the capital needed. For example, a group of vets is able to pool knowledge about different diseases and groups of animals, and two or three vets working together may be able to operate a 24-hour service.
When one of the vets is ill or goes on holiday, the business can cope. The Deed of Partnership sets out how profits will be shared and the different responsibilities and payments to partner. The main disadvantages of partnerships are that people can fall out (‘she doesn’t work as hard as me! ‘) ordinary partnerships don’t have limited liability and partnerships can rarely borrow or raise large amounts make (and slower) because of the need to consult all the partners. There may be disadvantages about how things should be done.
A further disadvantage is that the profits will be shared. A new type of business was created in Britain in 2003. This is the ‘limited liability partnership’. This type of partnership exist in business like accounting and the law where these are hundreds of partners. This is to protect individual partners should another partner’s actions cause the partnership trouble. For example, it would be unfair for accountancy partners to be liable for irregularities in auditing accounts by one of their colleagues.